National

Clamor to suspend excise tax on fuel rippling in Senate

MANILA, Philippines — At least four senators have expressed their desire to tackle the possibility of scrapping or suspending the excise tax on fuel mandated under the Tax Reform Acceleration and Inclusion (TRAIN) law.

After the House of Representatives began their deliberations on measures proposing to suspend or repeal the excise tax on fuel and petroleum products on Wednesday, Senator Aquilino Pimentel III said the Senate should also “entertain the same idea.”

“Let this be a lesson to all of us: it is very difficult to impose an excise tax on an item whose price is unstable and very volatile, and completely beyond our control and even our influence whatsoever,” he added in a text message to reporters, Thursday.

Senator Bam Aquino also said he hopes the upper chamber would tackle his Bawas Presyo Bill and the opposition senators’ joint resolution repealing the excise tax on fuel before the end of the year.

The resolution has been pending before the ways and means committee, according to Senator Francis Pangilinan.

“We (opposition senators) do not have the numbers to have it passed. It’s up to the majority now to act on it,” Pangilinan stressed.

For his part, Senator Sherwin Gatchalian lamented how the Philippines continue to suffer while Paris has already scrapped their own version of fuel tax amid violent protests.

On Wednesday, Malacañang greenlighted the implementation of the second tranche of oil excise tax hike next year amid decreasing international crude prices.

An excise tax of P2.50 a liter was imposed on diesel and bunker fuel starting this year due to the TRAIN Law. This would go up to P4.50 in 2019, and P6 in 2020. The excise tax on gasoline also increased to P7 in 2018, and then to P9 in 2019 and P10 in 2020. /jpv